DoD awards $5.98M for F110 engine rotor, impacting aircraft readiness
Contract Overview
Contract Amount: $5,981,202 ($6.0M)
Contractor: General Electric Company
Awarding Agency: Department of Defense
Start Date: 2025-12-17
End Date: 2028-04-28
Contract Duration: 863 days
Daily Burn Rate: $6.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ORDER FOR AIRCRAFT TURBINE ROTOR FOR F110 - GE ENGINE.
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45215
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $6.0 million to GENERAL ELECTRIC COMPANY for work described as: ORDER FOR AIRCRAFT TURBINE ROTOR FOR F110 - GE ENGINE. Key points: 1. Significant investment in critical aircraft component. 2. Sole source award to General Electric Company raises competition concerns. 3. Long-term contract duration suggests sustained need. 4. Potential for price escalation due to lack of competition.
Value Assessment
Rating: fair
The contract value of $5.98M for a specific aircraft component appears reasonable given the specialized nature of aerospace manufacturing. However, without competitive bidding, it's difficult to ascertain if this represents the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to General Electric Company. The lack of competition limits price discovery and may result in a higher cost to the government than if multiple vendors had been considered.
Taxpayer Impact: Taxpayer funds are being expended without the benefit of competitive pricing, potentially leading to overpayment for the aircraft turbine rotor.
Public Impact
Ensures continued operation and maintenance of F110-GE engines, crucial for military aircraft. Supports a key defense contractor, potentially impacting the aerospace supply chain. Long-term delivery schedule (2025-2028) indicates ongoing operational requirements.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Critical component for defense
- Established supplier
Sector Analysis
This contract falls within the Defense sector, specifically related to aircraft parts manufacturing. Spending benchmarks for specialized aerospace components can vary widely, but sole-source awards often exceed competitive pricing.
Small Business Impact
The award went to General Electric Company, a large prime contractor. There is no indication that small businesses were involved in this specific sole-source procurement, limiting opportunities for smaller enterprises.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price is fair and reasonable, and that future procurements explore competitive options where feasible.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns without competitive pressure.
- Long contract duration may mask inefficiencies.
- Lack of small business participation.
- Dependency on a single supplier for a critical component.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, oh, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.0 million to GENERAL ELECTRIC COMPANY. ORDER FOR AIRCRAFT TURBINE ROTOR FOR F110 - GE ENGINE.
Who is the contractor on this award?
The obligated recipient is GENERAL ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $6.0 million.
What is the period of performance?
Start: 2025-12-17. End: 2028-04-28.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. For this contract, the specific rationale from the Department of Defense is crucial. Without competitive bidding, it's imperative to verify that all avenues for competition were explored and deemed impractical or insufficient to meet the government's requirements.
How does the unit cost of this rotor compare to similar components or previous procurements?
Benchmarking the unit cost of this F110 engine rotor against similar components or historical data from previous procurements is essential for assessing value. Given the sole-source nature, a detailed cost analysis by the Defense Contract Audit Agency (DCAA) or similar entity would be necessary to validate the pricing and ensure it aligns with industry standards and fair market value.
What is the long-term strategy for ensuring competitive sourcing of critical aircraft components like this rotor?
The long-term strategy should focus on fostering competition for critical components. This could involve encouraging technology maturation for alternative suppliers, breaking down complex systems into more competitive sub-components, or utilizing longer-term strategic sourcing agreements that include provisions for future competition to drive down costs and ensure supply chain resilience.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: SPRTA124R0202
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 NEUMANN WAY, CINCINNATI, OH, 45215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,981,202
Exercised Options: $5,981,202
Current Obligation: $5,981,202
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4A124G0014
IDV Type: BOA
Timeline
Start Date: 2025-12-17
Current End Date: 2028-04-28
Potential End Date: 2028-04-28 00:00:00
Last Modified: 2025-12-17
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